Overview

Cloud computing has grown from being a niche IT sourcing strategy, adopted by a small percentage of organizations, to becoming a core element in the digital strategies of leading corporations.

Key Findings

Our survey and analysis resulted in several key findings:

The use of cloud for the chemical companies surveyed varied based on the specific enterprise processes or business operations. A majority of the chemical companies surveyed (more than 80 percent) plan to leverage the cloud for specific enterprise processes (such as HR) or business operations (IT), whereas a smaller percentage (42 percent) plan to use the cloud for new product development.

Across the majority of the chemical companies surveyed, software-as-a-service (SaaS) has a large footprint (92 percent). Eighty-three percent use SaaS for HR and 70 percent for sales.

Infrastructure-as-a-service (IaaS) has been adopted by only 48 percent of chemical companies surveyed.

Some chemical companies that have adopted cloud have been slow to achieve benefits at scale, and have found cloud has increased complexity. Privacy (68 percent), data and information management (56 percent) and security (60 percent) were identified as areas that increased or significantly increased complexity.

The potential benefits that initially attracted chemical companies to cloud services include IT cost reduction (68 percent), reduced cost of IT infrastructure (76 percent) and the ability to better deploy skilled IT resources (60 percent).

Approaches to readying an organization for cloud computing varies by company. Many have specific internal cloud training programs already in place for their organizations (68 percent), while some are in the process of training to create cloud based organizational core competencies (41 percent). Others are looking to hire externally to speed adoption (41 percent), and a few (23 percent) have leveraged external cloud training programs.

AuthorsThank you to our various contributors to this report, including the CIO Roundtable and Infrastructure Networking Group from ChemITC, Rahul Goturi, VP and CIO of WR Grace, and David Yankovitz and Manish Panjwani from Accenture.

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